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General Dynamics' (GD) Q2 Earnings Beat, Backlog Up Y/Y
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General Dynamics Corporation (GD - Free Report) reported second-quarter 2019 earnings from continuing operations of $2.77 per share, which beat the Zacks Consensus Estimate of $2.68 by 736%. Operating earnings also improved 5.7% from $2.62 in the year-ago quarter.
Total Revenues
General Dynamics’ second-quarter revenues of $9,555 million surpassed the Zacks Consensus Estimate of $9,402 million by 1.6%. Further, revenues increased 4% from $9,186 million in the year-ago quarter. In fact, revenues grew year over year in all the company’s segments (except the Information Systems and Technology segment).
Backlog
General Dynamics recorded a total backlog of $67.6 billion, up 1.96% year over year. The year-over-year increase in backlog was due to higher orders received by its Marine System segment. Funded backlog at the quarter-end was $54.4 billion.
General Dynamics Corporation Price, Consensus and EPS Surprise
Aerospace: The segment reported revenues of $2,136 million, up 12.7% year over year. However, operating earnings of $331 million declined 14.2% from the prior-year quarter’s $386 million.
Combat Systems: Segment revenues rose 8.1% from the prior-year quarter to $1,659 million. Moreover, operating earnings were up 2.5% from the year-ago quarter to $242 million.
Information Systems and Technology: The segment reported revenues of $2,158 million, which declined 11.6% year over year. Operating earnings also dropped 1.3% from the prior-year period to $154 million.
Marine Systems: The segment’s revenues of $2,325 million were up 7.2% from the year-ago quarter’s $2,168 million. Operating earnings also improved 1% from the year-ago level to $197 million.
Mission Systems: The segment’s revenues of $1,277 million increased 11.3% from the year-ago quarter’s $1,147 million. Operating earnings of $162 million also increased 5.9% from the year-ago quarter’s $153 million.
Operational Highlights
Company-wide operating margin contracted 40 basis points (bps) to 11.4% from the year-ago quarter’s 11.8%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 14.3% from the year-ago period to $16,712 million.
Interest expenses in the reported quarter increased 81.5% year over year to $236 million.
Financial Condition
As of Jun 30, 2019, General Dynamics’ cash and cash equivalents were $702 million compared with $963 million on Dec 31, 2018.
Long-term debt as of Jun 30, 2019 was $8,975 million, which massively declined from the 2018-end level of $11,444 million.
In the first six months of 2019, the company’s cash used for operating activities was $504 million compared with $291 million cash provided by operating activities in the comparable year-ago period.
Textron Inc. (TXT - Free Report) reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2019 earnings of $5 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 5.5%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2019 earnings of 94 cents per share, which surpassed the Zacks Consensus Estimate of 88 cents by 6.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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General Dynamics' (GD) Q2 Earnings Beat, Backlog Up Y/Y
General Dynamics Corporation (GD - Free Report) reported second-quarter 2019 earnings from continuing operations of $2.77 per share, which beat the Zacks Consensus Estimate of $2.68 by 736%. Operating earnings also improved 5.7% from $2.62 in the year-ago quarter.
Total Revenues
General Dynamics’ second-quarter revenues of $9,555 million surpassed the Zacks Consensus Estimate of $9,402 million by 1.6%. Further, revenues increased 4% from $9,186 million in the year-ago quarter. In fact, revenues grew year over year in all the company’s segments (except the Information Systems and Technology segment).
Backlog
General Dynamics recorded a total backlog of $67.6 billion, up 1.96% year over year. The year-over-year increase in backlog was due to higher orders received by its Marine System segment. Funded backlog at the quarter-end was $54.4 billion.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
Segmental Performance
Aerospace: The segment reported revenues of $2,136 million, up 12.7% year over year. However, operating earnings of $331 million declined 14.2% from the prior-year quarter’s $386 million.
Combat Systems: Segment revenues rose 8.1% from the prior-year quarter to $1,659 million. Moreover, operating earnings were up 2.5% from the year-ago quarter to $242 million.
Information Systems and Technology: The segment reported revenues of $2,158 million, which declined 11.6% year over year. Operating earnings also dropped 1.3% from the prior-year period to $154 million.
Marine Systems: The segment’s revenues of $2,325 million were up 7.2% from the year-ago quarter’s $2,168 million. Operating earnings also improved 1% from the year-ago level to $197 million.
Mission Systems: The segment’s revenues of $1,277 million increased 11.3% from the year-ago quarter’s $1,147 million. Operating earnings of $162 million also increased 5.9% from the year-ago quarter’s $153 million.
Operational Highlights
Company-wide operating margin contracted 40 basis points (bps) to 11.4% from the year-ago quarter’s 11.8%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 14.3% from the year-ago period to $16,712 million.
Interest expenses in the reported quarter increased 81.5% year over year to $236 million.
Financial Condition
As of Jun 30, 2019, General Dynamics’ cash and cash equivalents were $702 million compared with $963 million on Dec 31, 2018.
Long-term debt as of Jun 30, 2019 was $8,975 million, which massively declined from the 2018-end level of $11,444 million.
In the first six months of 2019, the company’s cash used for operating activities was $504 million compared with $291 million cash provided by operating activities in the comparable year-ago period.
Zacks Rank
General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Textron Inc. (TXT - Free Report) reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2019 earnings of $5 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 5.5%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2019 earnings of 94 cents per share, which surpassed the Zacks Consensus Estimate of 88 cents by 6.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>